Media Release

Double Success for Havelufer Quarter: First Building Phase and Germany's First Construction Project Completed Using the Integrated Project Delivery Method

A total of around 4,000 people will live in the Havelufer quarter once it is completed. © KAURI CAB

There is reason to rejoice in the Havelufer quarter: with six buildings completed, the first construction phase of the large-scale project of PATRIZIA and KAURI CAB Development was finished on schedule in mid-July. A total of 234 rental apartments were completed in the first subproject. The particularity: this building phase is the first construction project in Germany to be successfully completed using the integrated project delivery (IPD) method. The innovative procedure focuses on cooperation between all project members in a spirit of partnership. By using a multi-party contract, it offers enormous advantages, especially for large-scale projects. Drees & Sommer SE, which specializes in construction and real estate consulting, supports the development of the new neighborhood with project steering, IPD management and other services.

19 buildings, 1,700 apartments and many project participants: the Havelufer quarter in Berlin’s Spandau district is one of the largest construction projects in Germany. Despite factors such as the scale of the project, the start of construction in the middle of the Covid-19 pandemic, and the supply bottlenecks, the topping-out ceremony was held in 2022 and the first construction phase has now been completed, on budget and on schedule. “Due to integrated project delivery, we were able to secure contracts, capacities and raw materials at an early stage and, above all, for the long term. This would not have been possible without a multi-party contract. We are therefore particularly pleased that our first construction phase can serve as a blueprint for further IPD projects in Germany,“ explains Luca Bauernfeind, Managing Partner at KAURI CAB Development Berlin GmbH.

All four construction projects in the Havelufer quarter are managed using the IPD method. This means that all key stakeholders, i.e. the client, the architect, the planning firm and the construction company have entered a multi-party contract. Compared to individual contracts, the parties to a multi-party contract share both the risks and the additional costs as well as the savings. Creating incentives instead of issuing warnings and supplementary contracts is the motto in this case. Four multi-party contracts have been concluded for the Havelufer quarter, taking account of the project volume.

Integrated Project Delivery Is Still Uncharted Territory for Many

“When managing construction projects, many owners in Germany still follow brick-by-brick logic. This often has severe economic consequences, especially in large-scale projects. Integrated project delivery is different: because of the multi-party contract, the realization partner is involved with its expertise at an early stage, and all contracting partners are committed to the success of the overall project. This ensures that everyone pulls together, collaborates more efficiently, and meets cost and deadline agreements more closely,“ explains Moritz Schöbel, who heads the Havelufer quarter project at Drees &°Sommer.

With its origins in the Anglo-American sphere, the integrated project delivery model is still not very widespread in Germany. Yet the trend is upwards. In addition to several construction and infrastructure projects that started as pilot projects, the first building phase of the Havelufer quarter is the first completed IPD construction project in Germany. For Jörn Köster, Drees & Sommer’s expert in alternative handling approaches, who has supported several clients and projects using the IPD procedure, the motivation is obvious: “Many see risk sharing as a warning signal and do not even bother with the benefits of the IPD model. The Havelufer quarter now provides the best proof that in times of increasing project complexity and growing challenges due to digitization, lack of raw materials, and climate targets, it can definitely be an advantage.“

A Quarter with More Community Life

The future residents and tenants of the Havelufer quarter should also be pleased with the progress of this project. After all, they can move into their new home on time. “Around 80 percent of the apartments in the completed buildings at Streitstrasse 5-19 have already been rented out. Further subprojects will gradually be completed in the coming months. We expect that the remaining three IPD projects will also be completed on schedule and within budget,“ says Moritz Schöbel.

Final completion of the complex is scheduled for December 2024. And not only the project handling is special. Community life, individual and needs-based living space and digital networking are key, as are sustainability aspects. The district will meet the DGNB Gold standard and cover a large part of its electricity requirements locally via photovoltaic systems on the roofs, without producing CO2. And a smart tool is available to all neighbors: the dedicated neighborhood app allows users to connect with each user. There are restaurants, shops and many community areas, such as urban gardening spaces, a rentable state-of-the-art kitchen and co-working spaces in order to involve people and strengthen the feeling of community. A total of around 4,000 people will live in the Havelufer quarter once it is completed.